Introduction and challenges
Over the past 20 years, procurement organizations have been constantly changing, guided by the search for savings and synergies. Despite the many past reorganizations, improving the efficiency of the procurement function still requires a better interface with the rest of the company. There is also a need to redefine the global/local link, promote cross-functional actions and improve the “internal buying experience”, in particular through the digitalization of processes and the redesign of the function’s service offer.
Finally, the procurement organization must also adapt to the company’s own changes: mergers, acquisitions, the evolution of consumer behavior, business model changes, and the emergence of competitive low-cost offers.
How we can help
Argon & Co supports its clients in assessing the maturity of their procurement organization and the implementation of efficient procurement organizations (agile and providing value at the lowest cost). We have an extensive database of benchmarks which allows us to rapidly improve the efficiency and effectiveness of procurement structures. Questions for consideration include:
- Which organizational model, which level of centralization?
- What is the governance of the function, what are the interactions with the rest of the organization?
- What size should the team be?
- How to measure created value?
- How can teams be empowered in terms of skills?
- Which processes should be put in place – source to contract, procure to pay, contract management, supplier performance management?
- What digital purchasing tools should be implemented, what is the ROI?
- How quickly can we change?